No, this is unequivocally false.
From the Sheppard East LRT EA:
"The expected future travel demand on Sheppard Avenue is well below what would be required to justify the high costs of subway or elevated transit-ways. Based on the population and employment forecasts in the Sheppard area, the City and the TTC have projected that the transit demand in the Sheppard corridor will increase to 3,000 persons per hour in the peak direction at the busiest point on the line. This number would increase to 5,000 if a subway were constructed; the majority of the extra 2,000 people on a subway, relative to LRT, would re-route from other transit services to take advantage of the subway’s greater speed. Subway / Rapid Transit (SRT) technology is not justified if the peak hour demands are not approaching the range of 10, 000 people per hour during peak hour in the busiest direction (as shown in Figure 7-1)."
Subway capacity is 30,000 pphd. Sheppard East pulls in 5,000. That is 17% of the subway capacity.
You are telling me that it is good use of money to remove a transfer for 2,000pphd gain?
Neither NYCC or STC are growing very quickly, or at all. The growth they do experience is mostly residential from the odd condo.
There is no demonstrable need for a connection between these two nodes. The ridership is not there.
Which area of the city facing pressing growth should not receive transit so that we build a subway to service extra 2,000pphd on Sheppard?
Then we need better politicians and better ideas.
In the meantime, Sheppard is ideal for BRT. BRT can work up to 8,000 pphd, BRT won't cause delays or large capital costs, and Sheppard can grow it's ridership over the next 30 years.